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LL&E ROYALTY TRUST ANNOUNCES DISTRIBUTION

 LL&E ROYALTY TRUST ANNOUNCES DISTRIBUTION
 HOUSTON, July 27 /PRNewswire/ -- LL&E Royalty Trust (NYSE: LRT)


announced today that its monthly distribution to unitholders will be made on or before Aug. 15, 1992 to unitholders of record on Aug. 5, 1992. This distribution represents amounts payable to the trust with respect to production for the month of May 1992. The total amount of the August distribution will be $369,970 or approximately $.01948 per unit, approximately 90 percent of which came from the Jay Field with the remainder a result of Fee Land royalties.
 Commencing with the August 1991 distribution month, the working interest owner began escrowing funds for the estimated cost of dismantlement of platforms in the Offshore Louisiana property. The working interest owner's estimate of total dismantlement costs for Offshore Louisiana is $2,500,000. The total amount of the escrow for the August distribution and the cumulative balance of the escrow are $348,000 and $2.5 million, respectively. (The trust's interest is equivalent to 90 percent of the net proceeds from Offshore Louisiana). The working interest owner has informed the trustee that, because dismantlement of any platform will not take place until 1993, it will not exercise its right to escrow up to 125 percent of the estimated cost of dismantlement at this time. It will continue to monitor all relevant facts and estimates regarding such. Therefore, until changes occur which indicate the further escrow of funds from Offshore Louisiana properties is warranted, future proceeds from such properties will be paid to the trust.
 As previously announced, a platform has been placed on South Pass Block 86 (in which the trust has no interest) which is currently producing oil and gas from a reservoir underlying both South Pass Block 86 and South Pass Block 89. The costs expended and charged to South Pass Block 89 in the May production month for design, fabrication and installation of the platform amounted to approximately $236,000. After these charges and cost related to the drilling of the C-1 Well, excess production costs for South Pass Block 89 decreased by about $47,000. Remaining excess production costs to be recouped from future proceeds from South Pass Block 89 totaled approximately $47,000. Remaining excess production costs to be recouped from future proceeds from South Pass Block 89 totaled approximately $165,000 at the end of the May production month. The remaining estimated total cost of the platform to be allocated to South Pass Block 89 is approximately $815,000. (The trust's interest is equivalent to 50 percent of the net proceeds from South Pass Block 89.) The remaining platform costs and the costs of drilling additional wells will adversely affect revenues to the trust from South Pass Block 89 for several months. However, the timing of the occurrence of the platform costs is not within the control of the working interest owner, and the working interest owner is unable to predict the timing of such costs.
 The working interest owner has informed the trustee that calculations made, using the most recent reserve report, in accordance with escrow provisions within the trust documents indicate that it is permitted to place funds in escrow for all of the properties in which the trust has an interest. The working interest owner has elected to escrow funds only with respect to the Offshore Louisiana property through this distribution month. However, the working interest owner intends to continue to closely monitor each of the properties in which the trust has an interest with respect to possible changes in its estimates of relevant factors.
 The extent of future distributions from the properties in which the trust has an interest will continue to be dependent on normal factors associated with oil and gas operations such as oil and gas production levels, prices and associated costs, and the timing and extent of capital expenditures.
 -0- 7/27/92
 /CONTACT: Roark Ashie of First City, Texas-Houston, N.A., 713-658-7639, for LL&E Royalty Trust/
 (LRT) CO: LL&E Royalty Trust ST: Texas IN: OIL SU: DIV


SH -- NY078 -- 3552 07/27/92 13:18 EDT
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Publication:PR Newswire
Date:Jul 27, 1992
Words:686
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